Quarterly report pursuant to Section 13 or 15(d)

Condensed Interim Consolidated Statements of Cash Flows (Unaudited)

Condensed Interim Consolidated Statements of Cash Flows (Unaudited) - USD ($)
3 Months Ended
Mar. 31, 2019
Mar. 31, 2018
Cash flows from operating activities    
Net loss $ (13,750,427) $ (16,565,350)
Income from discontinued operations 96,132
Loss from continuing operations (13,750,427) (16,661,482)
Adjustments to reconcile net loss from continuing operations to net cash used in operating activities of continuing operations:    
Stock-based compensation 235,042 883,943
Depreciation and amortization 23,839 2,156,427
Deferred income tax benefit (3,053,000)
Amortization of license fee revenue (24,175) (24,174)
Amortization of right of use assets 567,131
Common stock issued for services 20,000
Loss on issuance of convertible notes, common stock and warrants 6,154,660
Change in fair value of convertible notes 1,644,582
Change in fair value of warrant liability 2,753,228
Impairment of property and equipment 11,480,491
Impairment of digital currencies 2,467,875
Realized gain on sale of digital currencies (4,788)
Changes in assets and liabilities:    
Prepaid contracts (3,584,699)
Prepaid expenses and other current assets 584,844 27,438
Digital currencies - mining, net of mining pool operating fees (1,377,869) (901,380)
Accrued interest (16,578)
Accounts payable (374,144) 1,101,198
Accrued expenses 990,517 526,590
Lease liability (590,514)
Net cash used in operating activities of continuing operations (3,184,652) (5,560,773)
Net cash provided by (used in) operating activities of discontinued operations (68,824)
Net cash used in operating activities (3,184,652) (5,629,597)
Continuing operations:    
Proceeds from sale of digital currencies 1,004,264
Purchase of digital currencies (5,625,000)
Purchases of property and equipment (3,024) (18,922,569)
Purchases of other investments (6,412,726)
Security deposits (673,463)
Purchases of patent and trademark application costs (25,959) (24,074)
Investment in Logical Brokerage, net of cash acquired (516,918)
Purchase of developed technology by 1172767 B.C. Ltd. (32,640)
Net cash provided by (used in) investing activities 975,281 (32,207,390)
Cash flows from financing activities:    
Proceeds from issuance of convertible notes 3,000,000 775,074
Repayment of notes payable and other obligations (81,040)
Proceeds from exercise of warrants 350,000
Proceeds from exercise of stock options 78,522
Proceeds from sale of Riot shares held by 1172767 B.C. Ltd. 320,000
Net cash provided by financing activities of continuing operations 3,000,000 1,442,556
Net increase (decrease) in cash and cash equivalents 790,629 (36,394,431)
Cash and cash equivalents at beginning of period 225,390 41,651,965
Cash and cash equivalents at end of period 1,016,019 5,257,534
Supplemental disclosure of cash flow information:    
Cash paid for interest 1,219
Cash paid for taxes
Supplemental disclosure of noncash investing and financing activities:    
Value of shares issued for Prive asset acquisition $ 8,480,000
Conversion of Preferred stock to Common stock 2,815,498
Deferred purchase price for BMSS $ 1,500,000